Can Northern Star Sustain Growth After Major Acquisition and Dividend Hike?
Northern Star Resources reports a remarkable 110% profit increase for FY25 alongside a 30% revenue rise, declaring a fully franked 30-cent final dividend. The acquisition of De Grey Mining marks a strategic expansion amid strong financial momentum.
- Revenue up 30% to $6.41 billion
- Net profit after tax surges 110% to $1.34 billion
- Final dividend increased to 30 cents per share, fully franked
- Acquisition of De Grey Mining Limited completed via Court-approved Scheme
- Voluntary dissolution of Canadian subsidiary following debenture conversion
Robust Financial Performance
Northern Star Resources has delivered a standout financial performance for the year ended 30 June 2025, with revenue climbing 30% to $6.41 billion and net profit after tax more than doubling to $1.34 billion. This surge reflects strong operational execution and favourable market conditions in the gold mining sector.
The company’s cash earnings also rose impressively by 110%, underscoring enhanced cash flow generation capabilities. These results have enabled Northern Star to declare a final dividend of 30 cents per share, fully franked, payable on 25 September 2025, marking a clear commitment to returning value to shareholders.
Strategic Acquisition Bolsters Growth
A key highlight of the year was the acquisition of De Grey Mining Limited, completed through a Court-approved Scheme of Arrangement in May 2025. Northern Star issued 0.119 new shares for each De Grey share, expanding its asset base and exploration footprint. While the immediate financial impact is positive, the full integration and contribution of De Grey’s assets will be closely watched by investors in coming quarters.
Alongside this, the company voluntarily dissolved its Canadian subsidiary following the conversion of a C$154 million debenture issued by Osisko Mining Inc., streamlining its corporate structure and focusing on core operations.
Joint Ventures and Operational Footprint
Northern Star continues to maintain a diversified portfolio of joint ventures primarily focused on exploration activities across multiple regions. Ownership stakes in these ventures remain largely stable, with interests in projects such as Phantom Well, Kalbara, and Jundee among others. These partnerships underpin the company’s long-term growth strategy by sharing exploration risks and costs.
The company’s net tangible assets per share rose significantly to $10.40 from $7.59 the previous year, reflecting strengthened balance sheet health and asset quality.
Governance and Audit
The full-year financial report was audited by Deloitte Touche Tohmatsu, who issued an unqualified opinion, providing assurance on the integrity of the reported results. Northern Star’s Dividend Reinvestment Plan remains active, offering shareholders the option to reinvest dividends into additional shares, supporting capital growth.
Bottom Line?
Northern Star’s strong FY25 results and strategic acquisition set the stage for a pivotal year ahead, with market watchers eager to see how integration and exploration efforts translate into sustained growth.
Questions in the middle?
- How will the De Grey acquisition impact Northern Star’s production and cost profile in FY26?
- What are the company’s plans for exploration and development within its joint ventures?
- Will Northern Star maintain or increase its dividend payout amid ongoing capital investments?
